• About
  • Privacy & Policy
  • Contact Us
Procurement Nation
  • Home
  • Suppliers
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
No Result
View All Result
  • Home
  • Suppliers
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
No Result
View All Result
Procurement Nation
No Result
View All Result

Uniqlo owner’s profits boosted by overseas surge as Japan sales fall

Mark White by Mark White
January 13, 2022
in Shipping
0

Clothes of the collaborative label +J from Uniqlo’s new tie-up with German designer Jil Sander, are displayed at the retailer’s press room in Tokyo, Japan November 6, 2020. REUTERS/Ritsuko Ando/File Photo

Register now for FREE unlimited access to Reuters.com

TOKYO, Jan 13 (Reuters) – Japan’s Fast Retailing (9983.T), owner of clothing brand Uniqlo, said on Thursday overseas markets powered profit growth in the first quarter, even as sales declined at home and in China.

The results marked a reversal from the past few years when China and Japan were the big sales and profit growth drivers for the retailer.

Operating profit rose 5.6% to 119.4 billion yen ($1.04 billion) in the three months ended Nov. 30. That beat the market’s consensus of 102.6 billion yen, according to the average of analysts’ forecasts from Refinitiv.

Register now for FREE unlimited access to Reuters.com

The company maintained its forecast for operating profit to climb 8.4% to 270 billion yen in the fiscal year ending in August.

Uniqlo’s international business reported record first-quarter results, driven by sales from South Asia, North America, and Europe. The pandemic weighed on results in China, while warm weather in Japan depressed sales of Fall and Winter clothes.

The company said in October it expects a gradual recovery to pre-pandemic levels as COVID-19 vaccinations progress and as it makes further inroads in the Chinese market.

Fast Retailing opened a flagship store in Beijing in November, its third megastore in mainland China, and plans to open 100 locations in the country each year going forward.

But the company has also flagged the risk of continued production and logistic delays that have plagued major clothing groups. In September, Fast Retailing said some clothing releases would be delayed due to pandemic-related lockdowns at partner factories in Vietnam.

In addition, the rapid depreciation of the yen is raising costs for raw materials and shipping, adding to domestic pricing pressure, Chief Financial Officer Takeshi Okazaki told reporters in Tokyo.

“We have reached a point where we have no choice but to raise the prices of some products,” he said.

As the company becomes increasingly global, strength or weakness of the yen will become less important, and stable currency markets are ideal for operations, he added.

Fast Retailing’s shares have fallen 9.5% year-to-date, compared with a 1.1% drop in the benchmark Nikkei 225 index (.N225).

($1=114.5700 yen)

Register now for FREE unlimited access to Reuters.com

Reporting by Rocky Swift in Tokyo; Editing by Clarence Fernandez, Subhranshu Sahu and Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

Source link

Previous Post

Covid Isolation Rules Eased to End Australia Supply Chain Crisis – Bloomberg

Next Post

TSMC sees multi-year growth ahead, to boost chip spending in 2022

Mark White

Mark White

Mark White is the editor of the ProcurementNation, a Media Outlet covering supply chain and logistics issues. He joined The New York Times in 2007 as an commodities reporter, and most recently served as foreign-exchange editor in New York.

Next Post
TSMC sees multi-year growth ahead, to boost chip spending in 2022

TSMC sees multi-year growth ahead, to boost chip spending in 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • About
  • Privacy & Policy
  • Contact Us
Call us: +1 234 JEG THEME

© 2021 Procurement Nation - Supply Chain & Logistics News

No Result
View All Result
  • Procurement
  • Supply Chain
  • Logistics
  • Science
  • Technology

© 2021 Procurement Nation - Supply Chain & Logistics News